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Many Americans feel anxious about investing their money because many aren’t sure how to choose the right investments. Still, the pressure on people to invest is high. It can seem like no matter where you go; you’re surrounded by messages telling you to put your money into certain stocks or funds. Despite the confidence of such assurances, not all these investments end up growing in value. As a result, many people experience uncertainty when it comes to making investment decisions.

A certain amount of risk should be expected when investing your money. After all, the nature of investing relies on making guesses about how certain assets will perform over given periods of time that have yet to elapse. People attempt to make educated guesses to maximize reward and minimize risk, but it doesn’t always work. There is always a chance that you’ll win big, and there’s always a chance you’ll walk away empty-handed.

I have seen both the positive and adverse outcomes of investing up close. I am a businessman in Colorado Springs and worked as a securities representative with Park Avenue Securities before advising wealthy individuals. I have tended to emphasize security when giving advice to clients, but I doesn’t believe that the most common strategies are always the safest or most predictable.

Popular Doesn’t Always Mean Reliable

Look at the Enron scandal of the early 2000s as a perfect example of how trendy investments can seem safe but wreak havoc on the lives of the people who buy into them. Many Americans lost vast amounts of money when Enron went bankrupt, but those who saw the disaster coming did little to warn them. Instead, the company told investors to stick to their guns and spend even more on company stock—all while top executives scrambled to sell their own before it became worthless.

Examples like the Enron disaster and the collapse of the US housing market illustrate a principle I would like to see more investors understand: Wall Street doesn’t always care about what happens to individual investors. I see traditional investments such as stocks and mutual funds as carrying more risk than most people realize. I am particularly critical of long-term options like 401ks and IRAs that rely on these investments to grow money. Misunderstandings about how they work convince people to be passive investors and to lock up their money until old age. These instruments often produce less wealth with more risk than investors are led to believe.

I recommend investing in smaller ventures located closer to home, such as local businesses. I have enjoyed being an investor in my community and an entrepreneur. I developed several businesses in Colorado Springs, with the help of other investors. These businesses provide an estimated 230 jobs to the area and I take immense pride in the quality of their offerings.